The Effect of Inflation on Gross Domestic Product with Interest Rates as a Moderating Variable

Abstract

Economic development in a nation primarily attempts to bring about the wealth of its citizens through rapid economic growth, and there is a strong relationship between national and regional development in order to create a robust, robust, and equitable economy. With interest rates acting as a moderate variable, this study seeks to examine how Indonesia's GDP is affected by inflation. The research sample is GDP, inflation and interest rates in Indonesia from 1968 to 2018 (32 years). Regression with moderation served as the study's analytical strategy. Inflation affects the Gross Domestic Product (GDP), however it has no impact on the GDP when interest rates are used as a moderating factor for inflation, according to the research's findings (GDP).